NRC Group (NRC) Q4 2023 earnings summary

Executive summary

• FY 2023 revenue and adjusted EBIT declined YoY; net profit was NOK 37m, and operating cash flow reached a record NOK 376m.

• Norway remained profitable, Sweden reached full-year adjusted break-even, and Finland’s adjusted profitability declined; year-end order backlog was NOK 6.940bn.

Financial highlights

• Q4 revenue was NOK 1.800bn vs NOK 1.954bn; adjusted EBIT was NOK 24m vs NOK 28m, with a 1.4% adjusted margin in both periods.

• FY revenue was NOK 6.732bn vs NOK 7.030bn; adjusted EBIT was NOK 121m vs NOK 137m, and adjusted margin was 1.8% vs 2.0%.

• FY net profit was NOK 37m vs a NOK 364m net loss in 2022; Q4 IFRS net loss was NOK 6m vs NOK 393m.

• Operating cash flow was NOK 306m in Q4 and NOK 376m for FY, supported by positive working-capital development.

Outlook and guidance

• 2024 outlook called for profitable growth, positive operational and financial development, and slight increases in revenue and adjusted EBIT margin; long-term adjusted profitability ambition is above 5%.

• A strategy for mid-2024 through 2028 was due for presentation at the May 2024 Capital Markets Update; National Transportation Plans were expected to be updated in H1 2024.